Feeds

JD Edwards says Oracle is anti-competitive

Detect a theme, here?

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Oracle's hostile bid for PeopleSoft is likely to be blocked on anti-trust grounds, according to the chief executive of J D Edwards, whose company last week agreed to sell itself to PeopleSoft.

Last week the ERP (Enterprise Resource Planning) sector was shaken from its normal torpor when an agreed off from PeopleSoft to buy mid-market enterprise aps vendor J D Edwards for $1.7 billion in stock was followed up by a hostile cash bid of $5.1 billion from Oracle for rival PeopleSoft.

Bob Dutkowsky, chairman, president and chief executive of J D Edwards, today characterised Oracle's "financially motivated" bid as "risky" and likely to lead to months of investigation by anti-trust investigators at either the US Department of Justice or European Union or both.

"There is a high likelihood that one or both of these bodies may block the bid," according to Dutkowsky.

Dutkowsky contrasted the "customer-driven" and "complementary" marriage of JD Edwards and PeopleSoft with Oracle's plans to reduce customer choice and product support should its audacious raid on PeopleSoft succeed.

Oracle says it will cease development of PeopleSoft enterprise apps and migrate customers to Oracle applications if its bid succeeds
bid find favour with PeopleSoft shareholders.

According to Oracle, its bid makes sense because both J D Edwards and PeopleSoft are "financially distressed". In a press conference at the start of J D Edwards annual Quest Global user conference in Denver today, Dutkowsky batted away this accusation. Although it "stumbled" in its last quarter, J D Edwards recorded six profitable quarters prior to that and the company remains "extremely solid financially".

Meanwhile executives at PeopleSoft wasted no time in pouring scorn on Oracle's overtures.

PeopleSoft President and CEO Craig Conway last Friday described Oracle's cash tender offer as "atrociously bad behaviour from a company with a history of atrociously bad behaviour".

Obviously it is a transparent attempt to disrupt the acquisition of J.D. Edwards by PeopleSoft announced earlier this week," he thundered.

PeopleSoft and its Board of Directors is required by law to review all cash tenders regardless of intent, and will provide a definitive recommendation to shareholders shortly. In the meantime, PeopleSoft advises it shareholders to take no immediate action. ®

Related Stories

PeopleSoft plunks down $1.7bn for J.D. Edwards
Peoplesoft & JD Edwards: an IBM narrative
Oracle ambushes PeopleSoft with $5.1bn bid
Oracle to migrate PeopleSoft accounts to... Oracle

Security for virtualized datacentres

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Bitcasa bins $10-a-month Infinite storage offer
Firm cites 'low demand' plus 'abusers'
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.